I have a joint mortgage with my husband and we have several years left on our fixed rate deal. We may separate before the end of the fixed term.
If we were to sell the house and buy another we could transfer the deal to the new house and not pay a penalty. (Not an option as we will probably separate)
If we sold the house and bought two separate houses during the fixed term period I understand that we would have to pay the penalty because we have ended the deal early.
I have looked at the bank's website but can't work out what would happen if we did a transfer of equity i.e. I buy my husband out and his name comes off the mortgage. Would the fixed term penalty still apply as there is a change in borrowers? Or would it not apply because it us the same house and loan, just removing one of the borrower names?
I don't know if this is even an option financially yet and I don't want to ask the bank yet as it is not definite that we will separate, but I wanted to get an idea of my options.
I am hoping that someone may have been through the same and /or is knowledgeable about mortgages and can tell me.
Thank you!